4-Star Stocks Poised to Pop: Banco Santander


Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Spanish banking giant Banco Santander (NYS: STD) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Santander's business and see what CAPS investors are saying about the stock right now.

Santander facts

Headquarters (Founded)

Madrid, Spain (1857)

Market Cap

$73.6 billion


Diversified banks

Trailing-12-Month Revenue

$47.1 billion


Second Vice Chairman/CEO Alfredo Abad
Third Vice Chairman Matias Rodriguez Inciarte

Return on Equity (Average, Past 3 Years)


Dividend Yield



Citigroup (NYS: C)
HSBC Holdings (NYS: HBC)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 95% of the 1,100 members who have rated Santander believe the stock will outperform the S&P 500 going forward. These bulls include cambista30 and gamblingkev.

Earlier this summer, cambista30 listed several of Santander's positives:

Strong Balance Sheet
Well diversified (Emerging and Developed markets)
Very good Management
Low P/E
Good Dividend
Great Business Model (Low Risk)

In fact, Santander currently sports a cheapish P/E of 7.4. That represents a slight discount to other banking giants like Citigroup (8.3), HSBC (9.9), and Wells Fargo (NYS: WFC) (9.1).

CAPS member gamblingkev elaborates on the bargain opportunity:

[Santander] does not share in most of the problems in the Spanish banking market but they do get hit every time talk of default in Greece or Portugal is mentioned. They have great prospects for growth in South America and I think they're undervalued based on that. They also pay a very solid dividend.

What do you think about Santander, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to track Santander?Add it to your watchlist.

At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool has created a ratio put spread position on Wells Fargo. The Fool owns shares of Citigroup and Wells Fargo. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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